Christmas is right around the bend and you have a couple things on your mind. How am I going to avoid dinner at the in-laws and how am I going to pay off my credit card this January? Over the next couple of weeks I will go through 12 ideas for holiday debt relief. Each one will teach you bit by bit how to manage money and create a debt free 2010!

HOLIDAY DEBT TIP 1: Don’t Add More Debt

Did you know that every $50 you tack on to your credit card balance will add another month to the time you can to pay it off. Don’t worry, the holiday’s aren’t canceled! You don’t have to tell the kids that Santa isn’t coming this year. You have to keep tabs on your budget. Right now you should really sit down and calculate the numbers. Decide the things you must have and what you can afford to lose. Do you really need a stocking stuffer for your pet iguana or a brand new outfit to show off for Christmas day? Figure out what is truly important and what can be missed. You may amaze yourself with how much you can actually save. Christmas is a wonderful time to learn how to manage money.

HOLIDAY DEBT TIP 2: Make a List and Check it Twice

It might be easy to overlook your finances during this busy holiday time but you must remember the big picture. It’s time to set goals and follow through with them.

Goal #1: Start an Emergency Fund – Any amount helps. Even if you can you spare $10 or $25 each week it’s time to start now and it will help. The goal is to have at least $1000 saved up and the sooner the better.

Goal #2: Start Debt Stacking – those credit card bills are starting to arrive in the mail right about now. This is a great time to start snowballing your debt. Review my previous posts for debt stacking tips.

Goal #3: Cut the Cost of Living – There are all sorts of ways to reduce those expenses. Turn down the heat a couple notches when you are at work or when you are about to go to bed. Turn off all lights when you aren’t in a room. Check any windows or door ways where hot air may be seeping out and seal it up. The amount of money you will save will amaze you.

Goal #4: Clip Coupons – All retailers want your hard earned cash. Look on the Internet or in the newspaper for bargains. If you shop around for the best deals you will save lots on your Christmas purchases.

You should create 6 more personalized goals for yourself. If you are having trouble find some resources on this blog that will help. If you have some questions ask me and I will try to help!

For my next post I have created another delightful song you can sing around the Christmas tree with family and friends and I have created some more tips on how to manage money and remain debt free this holiday season/Christmas!